Oil Futures Fall on Large U.S. Inventory Increase

1517 ET – Oil futures post back-to-back losses with a large weekly increase in U.S. crude inventories adding to downside pressure in a market concerned about weaker demand and oversupply. While geopolitical risks remain and could reverse the downward trend, the diminishing impact of U.S. sanctions on Russian oil companies has reduced supply-side tension, “a factor that had previously been bullish,” Antonio Di Giacomo of XS.com says in a note. “With that effect fading, the crude oil market loses one of the supports that had fueled expectations of tighter supply.” WTI settles down 1.6% at $59.60 a barrel and Brent falls 1.4% to $63.52.([email protected])

Oil Extends Losses After Large U.S. Stock Build

1405 ET – Oil futures extend losses in afternoon trade following an EIA report showing a 5.2 million barrel increase in U.S. crude oil inventories. The stock build, led by a rise in imports, offset much of the previous week’s draw. Gasoline stocks fell more than expected, down by 4.7 million barrels in a fifth straight weekly decline, and distillate stocks fell by 643,000 barrels, also down for five weeks. WTI is off 1.2% at $59.83 a barrel, and Brent is down 1.3% at $63.62.([email protected])